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This Unknown E-Commerce Stock Could Return 300% in 2017

  • Buffet dumps Wal-Mart, explaining that online retailers and ecommerce are too powerful to ignore.

  • Branded ecommerce is where big retailers are heading, like Dollar Shave Club and Bonobos.

  • Immudyne (IMMD) is a top pick to take advantage of colossal health & wellness market segments, for potentially multiples of upside like recent mover BIOP.

NEW YORK, NY / ACCESSWIRE / October 18, 2017 / When Warren Buffet speaks, people listen. And when the Oracle of Omaha dumps all of his stock in a big, profitable retail company like Wal-Mart (WMT), people really sit up and take notice.

Early this year, Berkshire Hathaway cut the entirety of their remaining stake in Wal-Mart. In the aftermath this February, Buffett went on CNBC to talk retailers. He said, "Retailing is tough for me to figure out because the internet has swept in and offered shoppers variety and low prices at their fingertips." He spent much of the interview praising Amazon (AMZN) and CEO Jeff Bezos:

"Obviously, I should have bought it long ago. I didn't understand the power of the model. And the price always seemed to reflect the power of the model at that time. It's one I missed big time."

Ecommerce isn't rising from the ashes of the Retail Apocolypse; it's the bomb that brought it on. Young people are used to making most of their major purchases online. Toys-R-Us is just another in a long string of businesses going belly up as shopping online takes over. Rue21, The Limited, Wet Seal, and BCBG Max Azria have all filed for bankruptcy protection this year as they've failed to make the jump to ecommerce.

Why You Just Can't Ignore Amazon

You've seen Amazon's stock go up and up for years. Maybe you've participated and maybe you haven't, but here's the crazy thing - an analysis by Slice Intelligence released in February found that 43% of all online retail sales in the U.S. went through Amazon that year. Almost half of all online shopping in the U.S. goes through AMZN. And, Amazon's dominant share of the U.S. ecommerce market is still increasing. The company captured 33% of all U.S. online purchases in 2015, which was up from 25% in 2012.

The truly amazing figure is this, though: even though traditional brick-and-mortar retail is slowing, still only about 10% of retail buying happened on the internet last year. Even though Amazon did $136 bln in sales last year, and they are the clear ecommerce leader, that's just 5% of all retail shopping. Amazon's growth could really only just be getting started.

Large-caps are an important component of every equity portfolio, chosen for their track record and history of success. But higher-risk, higher-reward small-caps are important as well for their rapid growth capabilities. We've seen these kinds of major price appreciation moves recently from small public companies that undergo "Repricing Events", like Celsion Corporation (CLSN), which rallied 400% almost overnight at the beginning of this month when investors picked up on the fact that a clinical trial they're running may be done sooner than expected.

Meanwhile the latest bitcoin name, Riot Blockchain Inc (NASDAQ:BIOP), has gone from an unknown, floundering $3.60 stock to a shocking 158% gain at $9.50 in less than a month with their pivotal Repricing Event.

IMMD is Poised to Deliver Big Returns to Investors

As Wal-Mart has tried to staunch the bleeding, they've made their own push into ecommerce through other acquisitions like Modcloth and Bonobos. These companies focus on high-quality marketing across social media and display advertising to push their high-end clothing. It's a branded approach to ecommerce where customers recognize and develop product loyalty.

Immudyne (IMMD) is doing the same thing in a different and remarkably profitable vertical - supplements and health/beauty - and as investors discover this small company, it could be ready for its own Repricing Event.

Globally, health and beauty make up nearly a trillion-dollar market, with a highly fragmented group of companies manufacturing and selling products. Increasingly these companies are accessing new sales channels to reach a broader set of customers, and the capabilities of direct response marketing and ecommerce are just starting to take off.

Look what IMMD has done in short time, since pivoting to this vertical last year. Revenue more than doubled (159% growth) from the first quarter of this year to the second as the company got their first, in-house haircare product launched and underway, with gross margins of 70% for the quarter. The company increased revenue by 330% in 2016 over 2015!

Most important, growth like this over a few months can also rapidly justify a "growth" valuation for a small-cap stock. If IMMD were trading at a multiple of sales closer to 7 or 10x like other growth companies in the public markets, the stock would be trading at $1.25 - $1.75 share.

If Immudyne can continue this consistent quarterly growth, they may be on a path to $20-$30M in annual revenue in a very short time, which can justify a market capitalization of $100-200M based on a 8x "growth" Price/Sales multiple. With the right execution, this could quickly represent several hundred percent upside from current prices.

About One Equity Stocks

One Equity Stocks is a leading provider of research on publicly traded emerging growth companies. Our team is comprised of sophisticated financial professionals that strive to find the companies and management teams that will outperform the market and deliver investment returns to our subscribers. We are not a licensed broker dealer and do not publish investment advice and remind readers that investing involves considerable risk. One Equity Stocks encourages all readers to carefully review the SEC filings of any issuers we cover and consult with an investment professional before making any investment decisions. One Equity Stocks is a for profit business and is usually compensated for coverage of issuers. In the case of IMMD, we are reimbursed for actual distribution costs of this distribution and have received 5000,000 shares of restricted stock for 12 months of Business Development, Capital Markets and IR related Advisory Services. We may receive additional compensation in the future. Some of our affiliates and many of our friends and colleagues are long IMMD. Please contact us at info@investorclick.net for additional information or to subscribe to our intelligence service.

SOURCE: One Equity Stocks

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